This Lab is Has Been Sold and Is No Longer Available
Profitable NJ Lab with NY, PA Licenses
Great Location; Excellent Growth Potential with Marketing; Hard to Get Licenses in Favorable MAC
This is a 20-year-old high-complexity reference lab in New Jersey providing services to NJ and PA, both in the Novitas Jurisdiction. It also has hard to get NY License and has Medicare and NJ Medicaid. It is ideal for a strategic buyer who has potential business in NY, NJ, and PA. All three states need licenses for clinical labs which are time-consuming, particularly for NY state. Moreover, NJ and PA’s Novitas MAC is attractive because of their good reimbursement for certain genomic tests.
The key attractions of this lab are:
- It comes with very difficult to get NY license as well as PA and NJ licenses (both of which also take some time to get)
- Both NJ and PA are in Novitas MAC which pays well for Molecular and DNA tests used for personalized Medicine and for CGx and certain cardiac panels
- It is the only independent small reference lab in this area and offers an excellent opportunity for growth with even modest marketing. The current owners have done no marketing
- It is a turn-key lab, which is used to provide healthy revenue and profit without any marketing. The lab has lost some revenue due to Covid as the physician’s offices were closed for some time in 2020 and since then, more patients have been using telemedicine. However new opportunities are opening as some physician groups are beginning to offer home visits and offering options to patients for tests at reasonable prices with cash payments
- Lots of growth opportunities with marketing to other physicians, to nursing homes / assisted homes, and to pharmaceutical companies for research studies.
- The Ortho-Clinical 5600 Analyzer of the lab offers some advantages as the single analyzer can run most of the tests and is favored in some clinical drug development studies. There is an opportunity to market to other nearby pharma labs for offering clinical tests that can be done locally.
The Lab is a profitable lab with 2018 and 2019 revenues at around $1.1M and discretionary earnings at around $400-500K. The Covid epidemic has reduced the revenue to around $850K and with discretionary earnings at around $185K-200K.
The asking price of the lab is $2.2M. The Lab offers outstanding opportunities for the right buyer. The Lab is in an ideal location. There is very little competition from local regional labs and is close to Philadelphia and NYC.
The seller wants to leave his legacy behind and see the lab prosper under the new owner. Hence we are looking for a strategic buyer who is experienced in the lab business, who has business potentially available from NY, NJ, and PA, and who can use favorable MAC of NJ and PA to grow its business.
Note: When inquiring about the lab, please email from your business address, and provide some details about your background, your company, and your ability to buy this lab.